iBio, Inc. Enters into Common Stock Purchase Agreement for Up to $16.0 Million with Lincoln Park Capital
July 24 2017 - 8:30AM
iBio, Inc. (NYSE MKT:IBIO) (“iBio”), a leader in developing
plant-based biopharmaceuticals, announced today that it has entered
into a $16 million common stock purchase agreement with Lincoln
Park Capital Fund, LLC (“LPC”), a Chicago-based institutional
investor. Upon execution of the agreement, LPC initially
purchased $1.0 million worth of common stock at $0.40 per
share. After the SEC declares a registration statement
effective relating to the transaction, iBio will have the right and
the sole discretion to sell to LPC up to an additional $15.0
million worth of shares over a 36-month period subject to certain
limitations. iBio will control the timing and amount of any
future investment and LPC will be obligated to make purchases in
accordance with the agreement. Proceeds from the Agreement will be
used for operations, marketing, and to advance development of
iBio’s product candidates and product collaborations.
There are no upper limits to the price LPC may
pay to purchase common stock from iBio and the purchase price of
the shares will be based on the prevailing market prices of iBio’s
shares at the time of each sale to LPC. LPC has agreed not to
cause or engage in any manner whatsoever, any direct or indirect
short selling or hedging of iBio’s shares of common stock. No
warrants, derivatives, or other share classes are associated with
this agreement. In consideration for entering into the
agreement, iBio has issued shares of common stock to LPC as a
commitment fee. The agreement may be terminated by iBio at
any time, at its sole discretion, without any additional cost or
penalty.
“This agreement with Lincoln Park will enable us
to access capital if and when we wish (subject to customary
conditions), to use possibly for our own product development
activities or for collaborative participations in products being
developed for clients of our contract development and manufacturing
organization (CDMO) subsidiary,” commented Robert Kay, Chairman and
CEO of iBio. “Our CDMO is fully operational for product
development from feasibility through full-scale manufacturing
based on our proprietary plant-based technology. As such, we
believe this capability for opportunistic equity collaboration can
accelerate business growth for the CDMO and provide upside
participation for us in selected third-party products.”
A more detailed description of the agreement is
set forth in iBio’s Current Report on Form 8-K to be filed with the
SEC.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy the securities in this
offering, nor there be any sale of these securities in any
jurisdiction in which such offer solicitation or sale are unlawful
prior to registration or qualification under securities laws of any
such jurisdiction.
About iBio, Inc.
iBio, a leader in developing plant-based
biopharmaceuticals, provides a range of product and process
development, analytical, and manufacturing services at the
large-scale development and manufacturing facility of its
subsidiary iBio CDMO LLC in Bryan, Texas. iBio applies its
technology for the benefit of its clients and the advancement of
its own product interests. The Company's pipeline is comprised of
proprietary candidates for the treatment of a range of fibrotic
diseases including idiopathic pulmonary fibrosis, systemic
sclerosis, and scleroderma. IBIO-CFB03, based on the Company's
proprietary gene expression technology, is the Company's lead
therapeutic candidate being advanced for IND development.
Further information is available
at: WWW.IBIOINC.COM
About Lincoln Park Capital Fund,
LLC
LPC is an institutional investor headquartered
in Chicago, Illinois which manages a portfolio of investments in
public and private entities. These investments are in a wide
range of companies and industries emphasizing life sciences,
specialty financing, cleantech, energy, real estate and
technology. LPC’s investments range from multiyear financial
commitments to fund growth to special situation financings to
long-term strategic capital offering companies certainty,
flexibility and consistency. For more information, visit
www.lpcfunds.com.
FORWARD-LOOKING STATEMENTS
STATEMENTS INCLUDED IN THIS NEWS RELEASE RELATED
TO IBIO, INC. MAY CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
SUCH STATEMENTS INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES SUCH AS
COMPETITIVE FACTORS, TECHNOLOGICAL DEVELOPMENT, MARKET DEMAND, AND
THE COMPANY'S ABILITY TO OBTAIN NEW CONTRACTS AND ACCURATELY
ESTIMATE NET REVENUES DUE TO VARIABILITY IN SIZE, SCOPE AND
DURATION OF PROJECTS. FURTHER INFORMATION ON POTENTIAL RISK FACTORS
THAT COULD AFFECT THE COMPANY'S FINANCIAL RESULTS CAN BE FOUND IN
THE COMPANY'S REPORTS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.
Contact:
Stephanie Carrington
ICR, Inc.
STEPHANIE.CARRINGTON@ICRINC.COM
646-277-1282
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